Archives posted in: Selling

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Shaping Customer Behavior Through Commercial Policy

By Tim J. Smith, PhD October 18, 2017

There are two basic approaches businesses take to managing commercial policy. For most, the default approach is tactical decision making. For some, they take the leap and add strategic decision-making.

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Bundling Products to Help Your Customers

By Kyle T. Westra October 18, 2017

Price bundling typically involves combining two or more discrete products with heterogeneous demand, with the demand for the bundle resulting in higher profits despite it effectively being a discount on each individual product.

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Top Salespeople Are NOT Magical Creatures

By Tim J. Smith, PhD September 14, 2017

Neil Rackham, Reed Holden, Andy Zoltners, Prabha Sinha, and many others have all repeatedly found that good salespeople are methodical. They use an approach towards sales that drive prospects through a process.  The process starts with discovery, goes through a learning phase and needs understanding stage, then a proposal that solidifies the tradeoffs, and finally closing.

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Give-Get

By Tim J. Smith, PhD August 24, 2017

I have seen three or four multinationals, and four to six local suppliers sell the same core product in the same country, at roughly the same price. Because there is so much competition in these markets, customers ask for discounts and drive suppliers to bid against each other to win their business. It is hard to make a stable supplier business in these situations. How can one win? And, what does value-based pricing have to contribute to these markets?

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Strategic Movements: August 2017

By Tim J. Smith, PhD August 24, 2017

What better way to attract customers than with a discount? I’ll tell you what is a better way: Redefine your business into something customers actually want to engage as a first resort, not as a cheap resort.

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Strategic Consulting as Detective and Diplomat

By Kyle T. Westra July 19, 2017

“Strategy consultant” is a job title that is can mean everything and nothing. It’s no surprise that people have trouble understanding what skills are necessary for a strategy consultant, let alone what the role even normally entails.

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Rules of Retailing and Changing

By James T. Berger July 19, 2017

Prof. Haskett defines the “wheel of retailing” as the concept where retailers enter the market through low-price strategies to build market share. With the high market share, the retailer would shift its strategy from attracting new customers to increasing profit margins through higher pricing. In implementing the higher pricing strategy, the retailer opens spaced for a new lower price retailer to come into the market as the wheel turns.

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Sales, Marketing, Finance and Pricing in Price Management

By Tim J. Smith, PhD June 16, 2017

Our own research—that of Homburg, Jensen, and Hahn—as well as research by Hinterhuber and still other works by Liozu, repeatedly indicated firms that engage sales, marketing finance, and pricing leaders in pricing decisions outperform those that don’t. At this point, we may even call this settled managerial science.

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Strategic Movements: May 2017

By Tim J. Smith, PhD May 16, 2017

Let me get this right: Grainger’s “pricing action” was to lower prices. The result was higher volumes and lower gross profits.  The aim was a clear market share take. And CEO Donald Macpherson is happy with the result?

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Product Management v. Sales: Profit Based Incentives for Both

By Tim J. Smith, PhD May 15, 2017

Can both product managers and salespeople have their incentives and key performance indicators aligned to the corporate goal: profits?  Yes.  They can…

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